Types of Auctions
The concept of an auction is simple: get a lot of people together who are interested in obtaining the same thing, and let them bid against each other to get the highest and best price available for the seller.
For the buyer, the concept is equally as simple, but it comes from a completely different perspective: purchase an item at the lowest possible, deep-discounted wholesale price, or try to steal it.
Of course, most auctions end up somewhere in the middle for both winners and losers. Tax sale auctions are a little different though—there are no losers. Yes, you could say that previous property owners who fell delinquent on their taxes lose, but they are not on the selling or buying side at the auction. They lost a long time ago when they were unable to pay the property taxes, so the tax sale actually becomes a win-win situation for everyone else. The only way to lose at a tax sale auction is to do something stupid like not pay attention to what you are bidding on, get distracted, walk out without paying, or some other gross mistake.
It’s a win for the county because they are able to recoup taxes that are rightly due for the citizens of that town. Remember, it’s not the county’s money, it belongs to the citizens and is necessary in order to provide for the operation of the county’s services.
The buyers win because they are able to get a guaranteed high rate of return in exchange for providing the money to the county in advance on behalf of the property owner, ...